You’ve probably heard the statistics. Only about 30% of American households have a formal budget. But nearly half of Americans feel anxious about their current financial well-being. Even more puzzling, the people who are most likely to have a budget make at least $75,000 a year. But the almost 50% of American households that are living paycheck to paycheck are not budgeting.
So, why don’t we budget?
Most likely it’s because we’re afraid of what we’ll find when we dig into our financial habits. If you are having financial problems, confronting the reality of your financial situation means you’ll have to either make changes or continue making bad choices. Change is scary and uncomfortable, so it’s no wonder we’d rather just avoid budgeting altogether.
Another potential reason for avoiding a budget is thinking it will mean total deprivation. As a culture, we like having the best, newest things. If the word “budget” triggers the feeling that you’ll have to give up everything that you enjoy in life, of course you’re going to avoid it.
Last but not least is laziness, or a feeling that budgeting just isn’t important. We all have so much going on in our lives that taking the time to budget can feel like a waste of time if you don’t understand the positive impact it can have on your life and future. That probably also explains why the average American only spends about 4 hours PER YEAR working on their financial situation.
Here at ACRO Services, LLC we can debunk all of these budgeting myths:
- The scariest thing is the unknown. If you don’t have a budget, then you can’t have a full understanding of your financial situation. The fear that comes from contemplating a budget will be far outweighed by the relief of knowing what your current situation is and that you are working to fix it.
- Budgeting doesn’t mean total self-denial! Having a budget doesn’t mean you can’t buy things you enjoy, it just means planning these expenses in advance. You might find that having fun expenses in your budget, like vacations or a new electronic, can help increase your anticipation leading up to a purchase, and your satisfaction after the purchase is made.
- Making time to budget doesn’t have to be difficult. The principles of making time to exercise are very similar. Having the help of a Personal Financial Coach, much like a personal fitness trainer, can make working on your finances a habit that you grow to enjoy.
ACRO Services, LLC is here to help you make your financial goals a reality through personal financial coaching. Learn more about our services here.